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Tuesday, July 24, 2012

Peter Schiff : We need a GOLD Based Monetary System

GIN: So you believe that paper currencies issued by various governments as they exist will continue, but they will be backed by gold?
Peter SchiffThey won’t continue as they exist because right now they have no value. They are backed by nothing.
Most paper money initially existed as a substitute for gold. That’s what gave it value. But right now what gives a currency value is other currency. Most countries hold reserves and the reserves are other currencies. If you are a backing up the euro with the dollar, what’s backing up the dollar?
I don’t think it is going to go to a point where all you have is coins and bars of gold, but I do think that we are going to have to go back to a monetary system based in gold, not based on paper. - in goldinvestingnews

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